Monday December 22, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Anastasiades concludes talks with troika as option of deposit tax returns

Cypriot President Nicos Anastasiades held talks with the troika in Nicosia on Friday morning as it looked like his government might have to abandon plans to create an investment fund to prevent the collapse of its banking system.

Cypriot political parties proposed on Thursday the creation of a solidarity fund to be securitized with social security fund reserves, state assets, Church property and expected natural gas revenues.

However, it appeared on Friday that this plan was to be rejected by the troika. German Chancellor Angela Merkel told lawmakers in Berlin on Friday morning that she was against the idea of using pension money for the fund.

The talks came as hundreds of protesters gathered outside Cypriot Parliament. There were reports that staff at Cyprus Popular Bank (Laiki) were demanding that the government return to the original plan to tax deposits on the island.

At the beginning of the week, Cypriot lawmakers rejected a plan, agreed with the Eurogroup, to tax deposits above 100,000 euros at 9.9 percent and those between 20,000 and 100,000 euros at 6.75 percent.

There was increasing speculation on Friday that Nicosia might have to return to a deposit tax to secure a 10-billion-euro bailout with the troika, which would avert the collapse of its banking system.

The European Central Bank said on Thursday that it would stop providing liquidity to insolvent Cypriot banks on Monday if no agreement with the troika is in place.

Another key bill submitted to Parliament on Thursday also contained the plan for placing Laiki in resolution. It foresees the lender’s nonperforming loans being transferred to a “bad bank” and deposits under 100,000 euros, which are guaranteed, being placed in a “good bank.” Uninsured deposits would be placed in the bad bank.

The deputy leader of President Nicos Anastasiades’s conservative DISY party, Averof Neophytou, said that the winding down of Laiki would save Cyprus 2.3 billion euros, leaving it to find another 3.5 billion from other sources in order to reach an agreement with the troika for a 10-billion-euro bailout.

He added that 361,000 out of 379,000 accounts in the bank contain less than 100,000 euros. He also said 8,000 jobs at the lender would be saved.

The Cypriot government is expected to make a statement at around noon on Friday to clarify its plans.

ekathimerini.com , Friday March 22, 2013 (11:33)  
Greek parliament vote in balance after Samaras election offer
Parliament to investigate Haikalis claim he invested in stock market
Tuesday morning stoppage on metro, electric railway and tram in Athens
Parliament´s ethics committee to look into independent MPs´ comments
Greek current account deficit shrinks in October
Greece's current account deficit shrank in October compared to the same month last year while tourism receipts rose, according to central bank data published on Monday. The deficit stood at ...
Energy shares and Greek rebound lift European equities
Rising energy shares drove European equities higher on Monday, while Greece's bourse also advanced after the country's prime minister offered on Sunday to bring pro-European independents int...
Inside Business
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS – The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
‘Crisis of confidence will come back again and again,’ says Thomas Piketty
He’s treated like a rock star wherever he goes to lecture. His book “Capital in the 21st Century,” a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek parliament vote in balance after Samaras election offer
2. Parliament to investigate Haikalis claim he invested in stock market
3. Tuesday morning stoppage on metro, electric railway and tram in Athens
4. Greek current account deficit shrinks in October
5. Energy shares and Greek rebound lift European equities
6. Parliament´s ethics committee to look into independent MPs´ comments
more news
Today
This Week
1. Euro shaky on ECB and Greece, dollar keeps edge
2. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
3. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
4. Draghi starts squaring QE circle in month of persuasion for ECB
5. Parliament's ethics committee to look into independent MPs' comments
6. Energy shares and Greek rebound lift European equities
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.